The PACS market generated $600 million in technology spending in 1999, according to market research and consulting firm Technology Marketing Group, but market growth seems to be slowing down.
TMG is forecasting 7% to 10% annual growth over the next five years. The Des Plaines, IL-based firm based its conclusions on a 1999 census of 1,800 major hospitals and imaging centers.
The study found strong purchasing in infrastructure -- specifically, in equipment that handles communication with referring physicians and specialists. While projections for systems purchases were higher in 1999 than in prior years, the rate of new installations remains relatively flat, according to TMG general manager Mitchell Goldburgh. The adoption rate may be limited by the ability of healthcare facilities to absorb the technology into their clinical operations, Goldburgh said.
In specific PACS market segments, TMG is projecting significant growth for computed radiography, workstations, radiology information systems, and digital archiving. Film printers are expected to decrease in total dollar sales, while film digitizers remain flat, according to TMG. Digital dictation systems and speech recognition products are expected to experience early-adopter market cycles. Approximately 30% of overall PACS purchases are expected to be part of an imaging modality purchase, according to TMG.
Despite the widely publicized benefits of filmless operation, the TMG study found that few hospitals with PACS technology are actually going filmless. Ninety-one percent of the respondents are still using film for diagnosis, with ultrasound and CT achieving the highest percentage (see chart below) in filmless operations. As a result, there was generally poor correlation between staff productivity and the percentage of filmless operations, reflecting the need for work process re-engineering in order to capture efficiencies, TMG said.
|
MODALITIES NOT USING FILM FOR PRIMARY DIAGNOSIS |
All Sites (N=445) |
Non-Hospital (N=70) |
100-199 Beds (N=50) |
200-399 Beds (N=170) |
400+ Beds (N=155) |
|
Ultrasound |
51% |
30% |
59% |
50% |
60% |
|
CT |
40% |
49% |
39% |
39% |
39% |
|
MRI |
33% |
62% |
24% |
27% |
28% |
|
Nuclear Medicine |
30% |
21% |
39% |
32% |
28% |
|
Angiography |
21% |
9% |
22% |
24% |
24% |
|
RF |
17% |
13% |
24% |
16% |
18% |
|
Plain X-ray |
15% |
11% |
17% |
14% |
18% |
The market data was collected from 200+-bed hospitals and major imaging centers, as well as hospitals in the 100-199-bed range. TMG believes these sites represent more than 80% of the PACS market. The data does not include projections for federal purchases, telecommunications, or non-imaging-related infrastructure investments in enterprise-wide installations.
By Erik L. RidleyAuntMinnie.com staff writer
July 28, 2000
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